KZN investigates R298m conflict of interest

The KwaZulu-Natal health department is investigating cases involving almost R298 million where there was a potential conflict of interest between suppliers and department officials.

This is according to a document presented at a provincial health portfolio committee meeting in Pietermaritzburg on Thursday.

The document, made available during a presentation to the committee by Andile Zondo, the manager of the department’s supply chain division, showed that in the 2012/13 financial year “cases under investigation” where there was a possible conflict of interest and that were “not condoned” amounted to R297,548,770.

A total of 1033 letters were sent to companies that were identified as having a potential conflict of interest. They were given 14 days to provide reasons as to why they should not be placed on the National Treasury’s list of restricted suppliers.

The document did not state how many of these ultimately ended up on the list. Zondo said the department was in the process of obtaining a new electronic procurement system and this would become operational in November.

She said the conflict of interest between suppliers and health department officials appeared to be most problematic with once-off contracts compared to recurring contracts.